Euronet Worldwide, Inc. (NASDAQ:EEFT) disclosed the pricing of its $350 million 1.5% convertible notes offering. The company would be selling the 1.5% convertible notes to qualified institutional buyers as per the Securities Act. The issue would likely to close on November 5, subject to conditions.
The company indicated that it would use the net proceeds for share buyback program of $65 million apart from repaying borrowings outstanding of $293.1 million.
In a statement, Euronet Worldwide, Inc. (NASDAQ:EEFT) said that an additional 13-day option has been granted to the initial buyers of the Notes to acquire additional 1.5% convertible notes worth $52.5 million.
Euronet Worldwide, Inc. (NASDAQ:EEFT) said that the notes to be issued would not be secured. It meant that it was junior as far as the right of payment was concerned compared to secured credit facility or any other secured renewal, replacement or refinancing thereof to the extent of asset secured. The notes would carry an interest of 1.5% per annum, which would be payable once in six months on April1 and October 1 of every year.
Euronet Worldwide, Inc. (NASDAQ:EEFT) indicated that starting from October 2020, the note-holders would be getting contingent interest of some periods in case the trading price of the Notes surpasses some threshold limit. It also clarified that any contingent interest would in addition to the normal interest of 1.5% payable to the note-holders. The Notes would become mature on October 1, 2044, except if the company preferred to buyback earlier or redeem or convert them into stock.
Euronet said that the conversion of notes would happen on some events apart from some periods, which was not disclosed. However, it fixed the conversion rate of 13.8534 shares of every Euronet Worldwide, Inc. (NASDAQ:EEFT) $1000 principal amount of the convertible notes. It represented a conversion price of about $72.18 indicating a premium of about 35% from the October 30 share price of $53.47.
Euronet Worldwide, Inc. (NASDAQ:EEFT) said that the Notes would be redeemed for cash at its option after April 5, 2018, subject to some conditions. Euronet said that holders of the Notes would cause all or any of their part of Notes for cash in every five years in October starting from 2020, 2024, 2029, 2034 and 2039.